1. Capturing the Voice of Customer: The Role of Quality Function Deployment, Lean Six Sigma, and Design for Six Sigma in Achieving Excellence through Baldridge Award
Amar Sahay, Ph.D.

2. Baldridge Quality Award: an overview
Award is given to organizations that have demonstrated outstanding quality in their products, services, and processes.
Categories:
manufacturing,
service,
small business,
education and health care.

3. Baldridge Quality Award Criteria
Submit an application that details the approach, deployment, and the results of quality activities under the following seven major categories:
Leadership,
Strategic Planning,
Customer Focus,
Information and Analysis,
Human Resource (workforce) Focus,
Process Management (operations focus), and Business results.

4. Focus of this presentation
This presentation focuses on one of the major categories of the Baldridge Quality Award – the customer focus.

5. Presentation: Customer Focus
Source: 2011–2012: Baldridge Criteria for Performance Excellence

6. “More than any other program, the Baldridge Quality Award is responsible for making quality a national priority and disseminating best practices across the United States.” Report by Building on Baldridge: American quality for the 21st Century, by the private Council on Competitiveness:

7. Meeting Customer Requirements
We will show how the requirements in the customer focus category of the Baldridge Award criteria can be met by using the proven tools and technologies –
Six Sigma,
Lean Sigma,
Design for Six Sigma (DFSS), and
the Quality Function Deployment (QFD)

8. Addressing Customer Issues and Achieving Excellence
The proven tools in meeting and exceeding customer expectations:
Six Sigma
Lean Six Sigma
Design for Six Sigma (DFSS), and
Quality Function Deployment (QFD)
These are customer-driven quality approach that aim at meeting or exceeding customer expectations.

9. Addressing Customer Issues…
The success of companies depend on:
designing, developing and launching new
products/service of superior quality,
getting to the market quickly (reduced cycle time),
bringing innovation in products,
and most important of all,
understanding the customer’s needs and
requirements.

10. How Six Sigma and Related Tools have helped Companies?
Six Sigma, Lean, Design for Six Sigma, and QFD are major tools and technologies that have helped companies achieve
excellence in designing and developing
products and services,
meeting and exceeding customer needs and
requirements, and
improving their revenues and profitability by
increasing their market share.

11. What is Six Sigma? (1 of 4)
Six Sigma can be described as a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and essential for a clear financial return for the organization.
Six Sigma was pioneered by Motorola in the mid-1980s and popularized by the success of General Electric.

12. What is Six Sigma? (2 of 4)
Six Sigma is a customer focused approach to create near perfect processes, products, and services all aligned to delivering what the customer wants.
It is a project based approach where majority of projects are selected for measurable bottom line or customer impact; majority of projects are completed within two to six months.
Six sigma projects use well defined set of statistical tools and process improvement techniques by well trained people in an organization.

13. What is Six Sigma? (3 of 4)
Six Sigma can be viewed as
a set of powerful tools for improving products and processes
an approach for improving both the process-and people related aspects of business performance
“Six Sigma has turned the company’s focus from inside to outside, changed the way we think and train our future leaders and moved us toward becoming truly customer-focused organization.”—Annual Report 2000, GE

14. Six Sigma (4 of 4)
Six Sigma is a business strategy that employs well-structured continuous improvement methodology and statistical tools to reduce defects and process variability.
Six Sigma has evolved from a focus on process improvement using statistical tools to a comprehensive framework for managing a business
Six Sigma has been employed in numerous companies to reduce operating cost, eliminate waste, increase reliability, incorporate innovation in products and services, reduce cycle time, and increase productivity.

15. Six Sigma and Variation Reduction
We quickly learned if we could control variation, we could get all the parts and process to work and get to an end result of 3.4 defects per million opportunities, or a Six Sigma level. Our people coined the term and it stuck. It was shorthand for people to understand that if you can control the variation, you can achieve remarkable results. --Interview with Robert W. Galvin, Chairman Emeritus of Motorola, Inc.

16. Objective of Six Sigma
The objective of a Six Sigma program is to reduce the variation in the process to the extent that the likelihood of producing a defect is virtually non-existent. This means improving quality, and meeting or exceeding customers’ expectations.
The improved quality and reliability in products and services leads to higher perceived value, and increased market share thereby increasing revenues and profitability.

17. What does ‘sigma’ mean?
The term sigma (denoted by the Greek letter,s) is a metric based on the statistical measure called standard deviation and is a measure of variability in a process. A metric is simply a measurement of some quality characteristic for example, percentage of defects.
The term six sigma statistically equates to 3.4 defects per million opportunities. Thus, a Six Sigma process is capable of producing 3.4 defects per million opportunities (DPMO).

18. Improvement in Quality from 3 to 6 Sigma Levels

19. Statistical Basis of Six Sigma
In a Six Sigma process, a shift in the process mean of 1.5-sigma on either side of the mean results into 3.4 nonconforming products per million.

20. Metrics used in Industry
Source: Enterprise Strategies, Technologies Enable Six Sigma, Aberdeen Group, Sep. 2006

21. Six Sigma in Industries
Industry research and current trend shows that Six Sigma and related methodologies are considered as the most sought after emerging technologies and programs by industries today.
A current industry survey of 600 companies shows that approximately 41% are implementing Six Sigma, and vast majorities of them (approximately 87%) are implementing Lean Six Sigma and related technologies [World Class Manufacturing Report, 2006]. The survey also shows that 72% of the companies acknowledge that Six Sigma and related technologies have increased their profitability [Quality Digest 36].

22. Six Sigma Success
A survey of 2577 quality professionals by Quality Digest on Six Sigma
“In the two years we have been tracking Six Sigma usage and perceptions, the predominant finding of survey responses is the overwhelming agreement on this methodology as a means to drastically reduce waste and improve productivity. when properly implemented and supported by management, the process yields huge results.
Very few of those who utilize Six Sigma have anything negative to say about it.
The down side reported was the difficulty of implementing it within small companies.

23. Quality Programs in Use
(Source: The Lean Sigma Benchmark Report, Aberdeen Group, September 2006)

24. Relative Emphasis on Lean/Six Sigma
(Source: The Lean Sigma Benchmark Report, Aberdeen Group, September 2006)

25. Factors Driving Quality and Six Sigma Program
(Source: The Lean Sigma Benchmark Report, Aberdeen Group, September 2006)

26. Six Sigma Model Suppliers Customers Processes (Manufacturing Outputs
and service
processes)
Outputs
Inputs
Existing
Business Processes
DMAIC
Measure
Analyze
Define
Improve
Control
Six Sigma Methodology
Improved Business Performance
Improve Quality, Productivity, and Perception Reduce Costs, Increase
Market Share, Increase Profitability Exceed Customer Expectation

27. Key Concepts of Six Sigma
Think in terms of customer requirements, critical to quality (CTQ) characteristics, key business processes, costs of poor quality, and overall strategic objectives.
Ensure that the identified metrics focus on business results and are tied to customer requirements, and CTQs.
Focus on corporate sponsors, project and process owners, and internal and external customers.
Identify and prioritize business impact projects according to expected savings and improved throughput.
Help to overcome resistance to change; obtain the required resources.

28. Six Sigma Applications
Manufacturing – reduce waste, improve product consistency, reduce variation, improve quality, solve equipment problems, create capacity, improve productivity
Human resource – reduce cycle time for hiring processes, eliminate unneeded steps from the process, improve productivity
Sales – improve forecast reliability, pricing strategies, pricing variation, market share
Anyone – better understand customer needs and requirements; tailor service offerings to meet or exceed customer expectations

29. Second Generation of Six Sigma
Six Sigma is part of the corporate business plan that is key to achieving business objectives, with top leadership support and involvement
Six Sigma must address the voice of the customer (VOC)

30. Definition of Quality
The quality of a product or service is the customer’s perception of the degree to which the product or service meets his or her expectations. Six Sigma is a customer-driven quality approach that aims at meeting or exceeding customer expectations.
Transcendent: Quality is something that is intuitively understood but
nearly impossible to communicate, such as beauty or
love.
Product-based: Quality is found in the components and attributes of a
product.
User-based: If the product or service meets or exceeds customers’
expectations, it has good quality.
Manufacturing-based: If the product conforms to design
specifications, it has good quality.
Value-based: If the product is perceived as providing good value for
the price, it has good quality.

31. Defining Quality Perfection Fast delivery Consistency
Providing a good, usable product
Eliminating waste
Variation reduction
Doing it right the first time
Delighting or pleasing customers
Meeting or exceeding customer expectations
Total customer service and satisfaction
Compliance with policies and procedures

32. Dimensions of Product Quality
Based on the definitions of quality, Garvin developed the following eight dimensions that describe product quality
Performance
Features
Reliability
Conformance to standards
Durability
Serviceability
Aesthetics
Perceived quality
The recognition of these dimensions by management and the selection of the dimensions along which the business will compete is critical to business success

33. Dimensions of Product Quality
Performance: Will the product do the job?
Features/Added features: Does it have features beyond the basic performance characteristics?
Reliability: Is it reliable? Will it last a long time?
Conformance: Does the product conform to the specifications? Is the product made exactly as the design specified?
Serviceability: Can it be fixed easily and cost effectively?
Durability: Can the product tolerate stress without failure?
Aesthetics: Does it have sensory characteristics such as taste, feel, sound, look, and smell?
Perceived quality: what is the customer opinion about the product or service? How customers perceive the quality of the product or service?

34. Customer-Driven Quality
Meeting and exceeding customer expectations
Customers
Consumers
External customers
Internal customers

35. Principles of Quality Focus on customers Participation and teamwork
Process focus supported by continuous improvement

36. Customer is principal judge of quality
Customer Focus
Customer is principal judge of quality
Organizations must first understand customers’ needs and expectations in order to meet and exceed them
Organizations must build relationships with customers

37. Customer Focus in Six Sigma
To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty – called critical to quality (CTQ) characteristics. CTQs represent the important drivers of Six Sigma improvement efforts.

38. Competitive Advantage
Six Sigma driven by customer wants and needs
Makes significant contribution to business success
Matches organization’s unique resources with opportunities
Is durable and lasting
Provides basis for further improvement
Provides direction and motivation
Six Sigma efforts are focused on building strong competitive advantage

39. Six Sigma Quality and Profitability
Improved quality of design
Improved quality of conformance
Higher perceived value
Higher prices
Lower manufacturing and service costs
Increased market share
Increased revenues
Higher profitability

40. Six Sigma and Business Results
Considerable evidence exists that Six Sigma initiatives positively impact bottom-line results from companies such as GE, Allied Signal, 3M, Xerox, Raytheon, Citibank, and many others.

41. Lean Six Sigma
Lean is an approach that seeks to improve flow in the value stream and eliminate waste. It is about doing things quickly.
Six Sigma uses a powerful framework (DMAIC) and simple to advanced statistical tools to uncover root causes of the problem to understand and reduce variation. It is about doing things right (defect free)

42. Lean and Six Sigma
Lean is an approach based on the removal of waste from service and manufacturing processes. Many companies have reported significant improvement through the removal of waste or non-value added activities.
Six Sigma improves quality through defect removal and process optimization. The improved quality leads to higher perceived value and increased market share thereby, increasing revenue and achieving higher profitability. Many companies have reported significant savings by reducing the cost of poor quality.

43. Difference Between Lean and Six Sigma (1 of 2)
Theory
Reduce waste
Reduce variation
Application guidelines
Identify value
Identify value stream
Flow
Pull
Perfection
Define
Measure
Analyze
Improve
Control
Focus
Problem
Assumptions
Waste removal will improve performance
Many small improvements are better than systems analysis
A problem exists
Figures and numbers are valued
System output improves if variation in all process is reduced

44. Difference Between Lean and Six Sigma (2 of 2)
Primary effect
Reduced flow time
Uniform process output
Secondary effects
Less waste
Fast throughput
Less inventory
Improved quality
Less variation
Uniform output
Improved efficiency
Improved productivity
Criticism
Statistical analysis not valued
System interaction not considered
Process improved independently
Source: Lean Six Sigma: some basic concepts, NHS Institute for Innovation and Improvement

45. Integrating Lean and Six Sigma
Companies have reported that bringing the two concepts- Lean and Six Sigma together delivers faster results.
While the objective of Lean is to create flow and eliminate waste from the process, Six Sigma improves process capability and reduces variation thereby improving quality and reducing cost. If a company just applies Six Sigma, it cannot maximize the potential of the organization. Lean is really an enabler for Six Sigma.*
*The Power of Six Sigma, Chowdhury, S., Prentice Hall, London.

46. Integrating Lean and Six Sigma
More and more companies are realizing that it is possible to achieve dramatic improvements in cost, quality, and time by using the above techniques.
Several companies including Toyota, General Electric, Motorola, and many others have accomplished impressive results using one or the other technique. However, using only one of the above techniques- Lean, Six Sigma, or Design for Six Sigma has limitations.

48. Design for Six Sigma (DFSS)

49. Design for Six Sigma (DFSS) (1)
DFSS is a systematic methodology to design new products or processes so that quality is built into every phase of product design. It is also used for improving existing products through redesign.
The roots of DFSS are in systems engineering. It combines systems engineering methodology with statistical methods to achieve ‘built-in quality’ objectives.
DFSS optimizes the critical to quality (CTQ) characteristics to achieve the best system performance. (CTQs are the selected few measurable quality characteristics that are key to a specific product, process, or service that must be controlled to meet or exceed customer expectation).

50. Design for Six Sigma (DFSS) (2)
The DFSS methodology has been identified by a five-step process: DMADV that stands for Define, Measure, Analyze, Design, and Verify. These are explained briefly.
Define: determine the project need, identify the project goals and objectives, determine customers’ needs and requirements, and include the voice of customers (VOC)
Measure: determine the characteristics critical to quality, prioritize customer needs and requirements, and assess customers’ needs and CTQ metrics
Analyze: evaluate the process options to meet customers need and CTQs
Design: design product and process to meet the customer requirements, include customer requirements in the development process
Verify: check the design to ensure that the customers’ requirements are met

51. Design for Six Sigma (DFSS) (3)
Unlike Six Sigma process, DFSS is relatively new and not standardized therefore, there are inconsistencies in the methodology, tools, and models companies employ.

52. Design for Six Sigma (DFSS) (4)
DFSS uses Robust Design (product is designed so that small variations in production or assembly do not adversely affect the product), Design of Experiment (DOE), Design for Manufacturability, Simulation and several other tools to optimize product design.
DFSS balances the cost and quality.
DFSS reduces the development cycle time in the long run.
In DFSS, both engineering methods and statistics are used to optimize the design requirements.
Like Six Sigma, the DFSS also uses a collection of tools. These tools must be understood in context to the engineering design for achieving DFSS objectives.

53. DFSS Process Concept Development and Concept Engineering (CE)
The process of DFSS can be divided into four categories described below. These are very similar to the IDOV process described above.
Concept Development and Concept Engineering (CE)
2. Design Development
3. Design Optimization
4. Design Verification

54. DFSS Process Concept Development and Concept Engineering (CE)
Concept development involves developing product concepts and functionality based on the critical to quality characteristics (CTQs), voice of customer (VOC), technological capabilities, and other economic considerations.
This stage is about bringing innovative ideas to the product that do not currently exist. This is done through listening to the voice of customers that helps determine the critical quality characteristics.

55. DFSS Process
Tools available to aid in the product design and development process.
Quality Function Deployment and House of Quality
Concurrent Engineering
CAD/CAM
Robust Design
Detailed Design and Analysis (Tolerance Design, Design for Manufacturability, Standardization and Simplification)
Failure Mode and Effects Analysis (FMEA)
Reliability Testing

56. DFSS Process
Quality Function Deployment (QFD) is an approach used to meet the customers’ requirements in the product design and development phase.
It helps to integrate the voice of customers and critical quality characteristics in the design of the products so that the products meet or exceed customer expectations.
QFD helps eliminate the traditional and wasteful design/redesign efforts by identifying and incorporating customer requirements at the earliest stage of design. Other benefits of QFD include
closer interaction between marketing, design, manufacturing, purchasing, and suppliers
reduced product development time,
faster market entry, and
customer focus.
An example of QFD is shown on the next slide

57. QFD Concept

59. Establishing Relationship between Customer Requirements and Technical Descriptors

62. Six Sigma or Design for Six Sigma?
Unlike Six Sigma, the Design for Six Sigma (DFSS) is not standardized and is not deployed well in industry.
The goal of DFSS is to address and incorporate quality issues early in the design/redesign process using robust design methodologies.
Companies who have successfully employed Six Sigma program have found that once they achieve 5-sigma quality levels (233 defects per million opportunities), they must design or redesign their products, processes and services by means of DFSS to surpass this quality level.
The cost to correct the potential design problems to reduce the defect level to achieve higher quality level (above 4-sigma) is usually greater than the projected cost savings of the further improvement effort. It is therefore important that the quality must be built in the design phase, and the quality issues must be addressed early in the design process.
To achieve Six Sigma quality level the companies must determine where the Six Sigma activity occurs in the life cycle of the product. In other words, the companies must determine when to apply the Design for Six Sigma or DFSS approach.

63. Six Sigma, Lean or Design for Six Sigma?
There is a need for an integrated approach to achieve the overall objectives.
It is important for the companies to identify and initiate appropriate projects based on Six Sigma, Lean, or Design for Six Sigma depending on the objectives and priorities.
Sometimes a combination of these methodologies is needed as an integrated approach to achieve the overall objectives of improving quality, reducing defect and becoming a Six Sigma company, reducing cost, eliminating waste, providing speed and reliability of delivery, incorporating flexibility and innovation in products and services, and meeting or exceeding customers’ expectation.

64. Baldridge Customer Requirements
How do you listen to customers to obtain actionable information?
How do you listen to potential customers, and customers of competitors to obtain actionable information and to obtain feedback on your products, customer support, and transactions, as appropriate?
How do your measurements capture actionable information for use in exceeding your customers’ expectations and securing your customers’ engagement?
How do you determine customer dissatisfaction? How do your measurements capture actionable information for use in meeting your customers’ requirements and exceeding their expectations in the future?

65. Baldridge Customer Requirements
Listening to the voice of the customer might include gathering and integrating various types of customer data, such as survey data, focus group findings, blog comments and other social media data, warranty data, marketing and sales information, and complaint data that affect customers’ purchasing and engagement decisions - all the above : DFSS, QFD, Six Sigma)
How do you identify and innovate product offerings to meet the requirements and exceed the expectations of your customer groups and market segments (identified in your Organizational Profile)? How do you identify and innovate product offerings to enter new markets, to attract new customers, and to provide opportunities for expanding relationships with existing customers, as appropriate? (all the above : DFSS, QFD, Six Sigma)
How do you consider customers of competitors and other potential customers and markets in this segmentation? (all the above : QFD)

66. Baldridge Customer Requirements
Customer Data Use How do you use customer, market, and product offering
information to improve marketing, build a more customer-focused culture, and
identify opportunities for innovation? ((all the above : QFD and DFSS)
How do you market, build, and manage relationships with customers to achieve
the following?
acquire customers and build market share, retain customers, meet their
requirements, and exceed their expectations in each stage of the customer
life cycle increase their engagement with you
(all the above : Six Sigma)

67. Most of the criteria laid out in Baldridge Customer Focus category can be met by Six Sigma and related tools. Six Sigma, Lean, Design for Six Sigma, and QFD are powerful tools in meeting and exceeding customer requirements and achieving excellence.